There's a pretty wild rumour running loose around the world wide web that developer Slant Six, responsible for SOCOM Confrontation and Fireteam Bravo 3, have been given the reigns by Capcom to develop a new Resident Evil title.
According to Kotaku, Slant Six is currently developing a Resident Evil title codenamed Racoon City. Slant Six themselves have blogged that they are currently at work on an unannounced "amazing new project" together with a "new publishing partner on a world class franchise."
It won't be the first time Capcom's outsourced their existing IPs. The latest title was Dead Rising 2 and that was received pretty well.
Capcom has refused to comment on the topic.